BOSTON: 3M has announced that it has completed the sale of substantially all of its drug delivery business to an affiliate of Altaris Capital Partners, LLC., for approximately $650 million in total.

The consideration includes cash, an interest-bearing security, and a 17 percent noncontrolling interest in the new company, Kindeva Drug Delivery that will operate the business.

Kindeva Drug Delivery is a global leader in drug delivery partnering with pharmaceutical and biotech companies to develop and manufacture complex pharmaceutical products using differentiated inhalation, transdermal, microneedle, and conventional drug delivery technologies. The divested business has annual global sales of approximately $380 million.

Approximately 900 3M employees, who primarily support the business, joined Kindeva Drug Delivery as a result of the sale.

On a GAAP basis, 3M will record a gain of approximately $0.40 per share as a result of this transaction, net of actions related to the divestiture. 3M’s ongoing ownership interest in the business will be reported using the equity method of accounting.